A Stock-Keeping Unit (SKU)refers to a Line Item of Inventory

question 4

True/False

A stock-keeping unit (SKU)refers to a line item of inventory offered for sale by a company.

---

Definitions:

Break-even Sales

The amount of revenue from sales that is exactly sufficient to cover all fixed and variable expenses, resulting in zero profit or loss.

Break-even Point

The point at which total expenses match total income, leading to neither a loss nor a profit.

Unit Variable Cost

The cost that varies with each unit of product produced, encompassing materials and labor but not fixed costs.

Sales Required

The minimum sales needed to achieve a specific financial goal or to cover costs.